BCH/USD and LTC/USD daily price analysis
According to the price analysis of Johan Tomasson, senior analyst at dagx.live, Bitcoin Cash (BCH) has been trading close to the 20-day EMA for the past three days. This is a positive sign as it shows that bulls are not waiting for lower levels to buy. A breakout of the moving averages can carry the price to $360, which is an important level to watch because it proved to be a major roadblock on two previous occasions.
If the BCH/USD pair breaks out of $360, it is likely to rise to $515.35. However, if it turns down from $360, it will remain range-bound for a few days. Tomasson’s bullish view will be invalidated if the pair turns down and plummets below the neckline of the head-and-shoulders pattern. Traders can buy 50% of the desired allocation on a breakout and close above the 50-day SMA with a stop loss of $270.
Litecoin (LTC) continues to be in a downtrend, but bulls are attempting to stem the decline, said Tomasson from dagx.live. If the price rises above the 20-day EMA, it will be the first indication that buyers are back in the game. He anticipates a change in trend above the downtrend line.
However, Johan will recommend a long position on the LTC/USD pair only after he spot a new buy setup because the downsloping moving averages and RSI in negative zone suggest that bears still hold the advantage.
If the price turns down either from the 20-day EMA or from the downtrend line, bears will try to sink it to the next support of $58. A breakdown of this level can drag the price to $49.3305, which is the 78.6% Fibonacci retracement of the rally.
John Todorov, a senior trader at dagx.live, said that the bounce in Bitcoin Cash (BCH) is facing resistance at the trendline of the ascending channel. Both moving averages have flattened out and the RSI is close to the midpoint, which suggests consolidation for the next few days.
A breakout of the 50-day SMA can carry the price to $360, which is likely to act as a stiff resistance, thinks Todorov. If the BCH/USD pair turns down from this level, it might remain range-bound between the neckline and $360 for a few days. Therefore, he withdraws the buy recommendation given in the previous analysis. If bulls push the price above $360, Todorov anticipates a move to $515.35.
Conversely, if the pair turns down from current levels and plummets below the neckline of the head-and-shoulders pattern, it can drop to $166.98 and below it to $105. The dagx.live’s senior trader will wait for the price to move above $360 before suggesting a trade in it.
According to John Todorov’s opinion, Litecoin (LTC) is currently facing resistance at the 20-day EMA. However, as it has not given up much ground, which is a positive sign. He anticipates a breakout and rally to the downtrend line. The 50-day SMA is just above the downtrend line, hence, John Todorov from dagx.live expects a strong selling at this resistance.
Contrary to his assumption, if bulls propel the LTC/USD pair above the 50-day SMA, the correction will be over. He will watch the price action above the downtrend line for a couple of days and then suggest a long position.
If the pair turns down from the downtrend line, it might remain range-bound for a few days. The cryptocurrency will resume its down-move on a break below $58. Currently, John from dagx.live do not find any reliable buy setup, hence, he is neutral on it.